Which of the Following Is not Correct with Respect

question 103

Multiple Choice

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions?

• A) If the combination qualifies as a merger, it will be accounted for using the carryover method.
• B) Goodwill is recognized on long term assets only
• C) Assets and liabilities are transferred from both existing entities to the new entity at book value.
• D) The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

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Definitions:

Increased Efficiency

The improvement in performance or productivity, achieving more output from the same or fewer inputs.

More Skilled

Refers to possessing higher levels of competence, expertise, or proficiency in a particular area or field compared to others.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often within a professional context.

Lack Of Communication

The absence, breakdown, or inefficiency of exchanging information, leading to misunderstandings and challenges in relationships or organizational operations.